Q2 2024 Vancouver Office Market Report

Second quarter statistics showed Metro Vancouver’s office market continues to retrench with availabilities going still higher, leasing activity staying subdued, and a further contraction in occupied space. The story for both landlords and tenants remains largely the same, with the Vancouver office market moving sideways at best, and below normal leasing activity. Both at the metro level, and the all-important downtown market, leasing activity fell to all time lows (outside COVID). For the quarter, Metro Vancouver office availabilities increased 30 basis points (bps) to register 13.9%, and were up markedly from 12.8% registered in the year-ago period. The downtown availability rate saw a similar increase, finishing the quarter at a multi-decade high of 16.5%. Reflecting a preference for superior space by many occupiers, the downtown Class A availability finished the quarter at 14.2%. Despite weakening fundamentals however, rents continued to largely hold steady.